Woodlark Gold Project Secures $40M Funding, Mobilises Drilling and Infrastructure

Funding Milestone and Strategic Contracts

Geopacific Resources Limited (ASX: GPR) has successfully closed a $40 million renounceable pro-rata entitlement offer, a critical capital injection aimed at advancing the Woodlark Gold Project in Papua New Guinea. This funding underpins an ambitious 30,000-meter drilling program and supports the delivery of an updated Definitive Feasibility Study (DFS) scheduled for completion by the end of 2025.

The company has secured experienced partners to execute key phases of the project. Quest Exploration Drilling (QED), a well-regarded PNG drilling contractor, has been appointed to commence drilling activities in May 2025. Meanwhile, GR Engineering Services (GRES), specialists in gold processing plant construction, have been re-engaged to lead the DFS update and front-end engineering and design (FEED) work, leveraging their prior involvement in the project’s initial development.

Operational Progress and Exploration Initiatives

March 2025 saw mobilisation of earthmoving equipment to upgrade roads, prepare drill pads, and support trenching activities. Early-stage exploration commenced with auger sampling targeting high-priority zones identified through geological mapping and geochemical anomalies. Assay results from 326 samples are anticipated in May, setting the stage for trenching and more detailed drilling.

Complementing the epithermal gold exploration, an independent study assessing the porphyry copper-gold potential at Woodlark is underway. This work aims to identify deeper mineralisation targets that could substantially enhance the project’s resource base. Results are expected imminently and could redefine the district’s mineral potential.

Financial Position and Project Outlook

As at 31 March 2025, Geopacific held $34.2 million in cash, alongside $2.76 million in PNG GST receivables and $17 million in long lead equipment assets. The company’s strong cash position provides a runway exceeding 13 quarters at current expenditure levels, reflecting prudent financial management following the repayment of outstanding bonds in January 2025.

The DFS will build on the positive outcomes of the July 2024 scoping study, which demonstrated robust economics at a gold price of A$2,900 per ounce. With gold prices recently exceeding A$5,000 per ounce, there is significant upside potential to optimise project design and throughput to maximise returns. The DFS will also incorporate updated mineral resource classifications and technical studies, including geotechnical and metallurgical assessments.

Community and Environmental Stewardship

Geopacific continues to maintain a strong focus on sustainability and community engagement. The company reported no lost time injuries during the quarter, extending its safety record to 56 months without incident. Community relocation efforts are progressing well, with 184 buildings completed to date, and ongoing support provided in health, education, and employment opportunities on Woodlark Island.

Environmental studies are advancing in parallel, with an updated Environmental Assessment Report expected in the first half of 2025. Engagement with PNG regulatory authorities has been constructive, with no issues raised during recent site visits.